In April 2019, the United Kingdom began implementing Phase I of Making Tax Digital (MTD) for VAT requiring making digital filings of the nine boxes of the VAT return through HMRC’s API-portal.
The implementation affected all VAT registered businesses with a taxable turnover above the £85,000 threshold and was deferred to October 2019 for some types of businesses.
It caused many initial problems for HMRC and a “soft landing” period was granted to businesses, buying them more time to implement permanent links whilst using bridging software to transmit their VAT returns digitally.
Delayed an extra year by the COVID-19 pandemic, Phase 2 of MTD has now launched on April 1st, 2021, and missing MTD obligations now carries the dangers of increasingly costly penalties.
Download your free guide on Making Tax Digital and make sure you never put your business at risk!
Source: taxbackinternational.com
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